10 tax deductions you don't need to be wealthy to claim

Homestead credit claims for prior years can be filed up until the filing deadline for each year's claim:. But because… Read more 9 min read. Materials and Supplies Any money spent on your work as an independent contractor can be claimed as a tax deduction. The expenses must be for going from your home to another work location in the same trade or business. If you have more than one second home, you have to pick one for tax purposes. The guiding rule is how old he was on the last day of the year. Receipts should be kept for at least seven years.

Employees who work at home represent a growing segment of the work force. In many cases, those employees may be eligible for tax deductions that are unavailable to in-office employees. Before you claim these deductions, be sure you meet the criteria set out by the IRS, or you could face additional taxes or penalties.

Don’t Claim Anything that Isn’t A Business Expense!

Now is a great time to discuss tax deductions — especially those deductions often missed by taxpayers like you. Take a look below — do any of these deductions apply to you? Are you keeping proper records to make sure you get the best possible tax refund? Did you use Etax. The fees you pay for tax return help are always tax deductible.

Are you part of a union? How about a membership body related to your profession? If you pay work-related union or membership fees you can claim the total cost of these fees. If you are required to use your personal car for work-related reasons, apart from driving to and from work, you can usually claim fuel and maintenance costs as a tax deduction.

There are now just two methods for calculating this deduction — you can either use a 12 week logbook which generates numbers you can re-use for 5 years! If your bank requires you to buy private mortgage insurance, those premiums are tax deductible for mortgages in some cases. However, the amount of the deduction is scaled back depending on your income. One thing that many people fail to fully understand is the point system that mortgage lenders often use.

It is common to see fees in the amount of one to three points on a home loan. These fees are included on the income tax deductions list and can be fully deducted provided they are associated with the purchase of a home. If you are refinancing your home mortgage, then these points are still fully deductible, but must be done so over the life of the loan and not up front.

Those that do refinance their homes can write off the remainder of their old points. Some people may be able to deduct some of the interest paid on a home equity loan line of credit from their s. However, the Internal Revenue Service limits the amount of debt that can be treated as home equity for this tax deduction. You are limited to deducting the smaller of:. Many people find it necessary to take out a loan to make improvements to their homes, as well as for repairs and fixes.

It is important to distinguish these two types of work, however, because only the interest on loans taken out for home improvements may be deducted from your income taxes. A qualifying loan is one that is taken out to add "capital improvements" to your home, meaning the improvement must increase your home's value, adapt it to new uses, or extend its life.

Examples of capital improvements are: Loans that do not qualify for a home improvement loan interest deduction are those that are taken out for repairs only. The only thing wrong with mentioning prices on the internet is that you will be expected to honor that price for a period of time even after you remove the price. So, should you worry about being called a business? I started breeding dogs 14 years ago in both Germany and the UK.

It has always been a hobby and certainly never left a profit under the bottom line. During those years I bred less than one litter a year. I Co-own dogs who live with Pet owners and will allow me to use them for one litter. Dogs that I use at stud are usually sourced via artificial insemination and Semen is bought from European breeders in order to be able to keep my lines going.

I am also a dog show Judge and have been head of the breeding department in my German Club. For this reason my main aim of my website as well as another Dalmatian related website — http: In the countries I have previously lived there was no need for me to ever keep receipts as I never bred enough and if I did I spend a lot of money on the breeding and therefore it was clear that not profits where achieved.

We moved to the States in and I am planning to raise my third litter in since my arrival. For the last litter I bought a dog in Germany and had it flown to the States, for the upcoming litter I am planning to import Semen. Do I need to proof one day, that I do not make money but that I am passionate about this hobby? Is it OK to mention prices on the website?

I want to make sure you have the whole publication. You should download this to your computer and have it accessible because this has a lot of farm answers in here.

It will be worth the money to find a good enrolled agent and do a sit down. The ewes that were raised by you but being used for breeding purposes are treated differently. When you sell one of these ewes, it goes on form But your question is about the puppy. The puppy was purchased for draft purposes but he never made to an age where he could be used. The depreciation time for a dog is 7 years. The depreciation time for sheep is 5 years.

I have a couple of questions. One related to livestock guard dogs and one related to the livestock. My family has lived on a farm for the past 5 years. When we first moved here my father-in-law had a handful of Katahdin sheep. Over the last 5 years we have basically taken over the flock and increased its size to 70 ewes through retention of the ewe lambs each year. This is the first year that we will be filing a Schedule F claiming the income and expense of the farm.

We purchased a Great Pyrenees pup in April to train to guard the sheep there are already 2 grown Pyrenees dogs approx. He is now about 7 months old. Can we deduct the cost of the pup that died? Do we need to depreciate the cost of the remaining pup? Also, since we did not purchase the ewes, should we be depreciating them? If so, should the value be based on what would typically be spent to buy a breeding ewe? All of the ewes in the flock have been through at least one lambing season — we did not keep any of the ewe lambs from our season.

I appreciate any feedback you are able to give! Do you have a hobby or a business? But you will be able to write off the costs associated with the breeding and care of the litter. Hi, I purchased a French Bulldog female in and in April of she had her first litter and I made a decent amount of profit for the litter, surpassing my initial investment by a lot.

So between April and now I have purchased a male and another female for future breeding. My question is this: If I bought the two dogs with the profit from the first litter does that cancel my total profit for the year even if the two new dogs are not a part of my breeding program yet? I think that makes a lot of sense. I see by your email address that you definitely do have a breeding business.

So you already claimed half of the cost of your dog on your return. Lick the guy to death? So, how would you document his guard dog training? Has he had any? Really, what would happen if you were attacked? Would he defend you? Would be provide a formidible defense?

So, let me ask you this, if an IRS agent came to your house to investigate your guard dog claim; what would your dog do? Hi Denny, I just had the privilege of meeting two wonderful therapy dogs the other day. We were having a nasty storm in St. Louis again and their owner caretaker? I got the opportunity to pet them. Storms turn me into a basket case and I suddenly felt much better. I knew that therapy dogs were helpful, but I never expected that they could help me.

If your wife is an employee, then the expenses will go on a form instead of on a schedule C like someone who is self-employed. Now about filing separate—you mentioned Missouri—so, it might be to your advantage filing separate anyway for some people with pensions, it works better.

But, if you and your husband are on good terms, and you want to file together—you can—just list him as a non-resident. Run your taxes both ways to see what works best for you. I purchased an adult bitch to breed in After her purchase, I had her vetted and then she was bred and had her litter on puppies on December 29, In , I had costs to purchase the bitch, have her vetted and then, of course, her regular care food, grooming, etc.

So, can I roll all of the expenses from into my return when I am able to also claim the revenue from the puppies to offset that income? OR should I go ahead and claim the expenses on the taxes and then any additional expenses incurred in along with the revenue on the return? I apologize if I made no sense here. Hi there, I just started my breeding business in I had my first litter in I lost my female in a hit and run late Do I claim her total cost as a loss for ?

It kills me to even think this but reality is what it is. I work from home in a secluded canyon in the mountains. Our dog is half bulldog, half lab. Does our dog qualify as an actual tax deductible guard dog? Can those surgery expenses be included in our taxes? Hi, My wife is a professional counselor finishing up her her internship currently and works with a group of counselors out of a dedicated office.

We just got a puppy that she plans to use as a therapy dog at the office. What are our options for tax write-off for the pup? I am USDA and state licensed. I have always filed as a sole proprietor, but this year became an LLC, sole owner. Do I need to change anything on my current tax return? I use Turbo Tax business software and somehow I always get routed to schedule C.

Charitable contributions and volunteer work can reduce your taxes and enrich your retirement.

When you're on payroll, whether you work from home or not, your employer takes care of your taxes for you, deducting federal, state, Social Security, and Medicare taxes with each paycheck, and even pitching in for half of the Social Security and Medicare taxes. If you work from home, even on a part-time basis, you can probably save some dough come tax time by deducting your home office costs. The challenge has always been the line, MENSA-like IRS form home office workers had to complete, which may have kept some from even taking advantage of this home tax benefit. Whether you are self-employed or an employee, if you use a portion of your home for business, you might be able to deduct the associated costs. A home office deduction is generally easier for self-employed individuals to claim.


What You Can Deduct On Your Taxes. According to the U.S. Census Bureau, roughly million people work at home throughout the country. With this becoming such a popular option, and April 15th fast approaching, it is a good idea to know what you can deduct on your taxes. If you want an idea of what types of home expenses you can and cannot deduct from your taxable income, read on. What Home-Related Expenses Can I Claim on My Tax Return? Review the expenses you can and cannot claim on your Tax Return if you itemize your deductions below. Can You Deduct Your Home Office When You're an Employee? Share on Facebook. Today many employees work at least part of the time at home. If you use a home office for work, can you take the home office deduction? Maybe, but you'll have to jump through lots of hoops to do it. Tax Savvy for Small Business. Stand Up to the IRS. Related.

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